Wednesday, January 31, 2007

Return preparer fraud generally involves the preparation and filing of false income tax returns by preparers who claim inflated personal or business expenses, false deductions, unallowable credits or excessive exemptions on returns prepared for their clients. This includes inflated requests for the special one-time refund of the long-distance telephone tax. Preparers may also manipulate income figures to obtain tax credits, such as the Earned Income Tax Credit, fraudulently.

Tuesday, January 30, 2007

A new Web site from Link2Gov allows taxpayers to make federal balance-due tax payments via debit card, paying a fixed convenience fee of $2.95.

The site will charge the same fee no matter the amount of payment. Link2Gov is an Internal Revenue Service-authorized payment provider and already offers credit and signature debit card processing of tax payments at Pay1040.com and through a toll-free phone

Taxpayers can pay taxes electronically by authorizing an e-pay option such as an electronic funds withdrawal from a checking or savings account or by paying with a credit card. Taxpayers making recurring payments may want to enroll in EFTPS.

Monday, January 29, 2007

Sunday, January 28, 2007

IRS Forum examines the extent to which the IRS is meeting or failing to achieve its Mission Statement. Members of IRS Forum will identify instances in which the IRS is not helpful, where there is a lack of integrity and lack of fairness and instances where consistent treatment is not offered.

The PPA of 2006 modifies record-keeping requirements for cash, check or other monetary gifts to charity

HOW MUCH? Regardless of the contribution amount, you must maintain reliable written records to claim a charitable donation beginning with gifts made during and after January 2007.

GOOD RECORDS? The old rules required records only for contributions of $250 or more. To fulfill record-keeping requirements, a written communication from the charity must contain he name of the group, the date of the contribution, and the amount.

Thursday, January 25, 2007

Internal Revenye Service WASHINGTON — Taxpayers across the nation will have until Tuesday,April 17, 2007, to file their 2006 returns and pay any taxes due,the Internal Revenue Service announced today.Taxpayers will have extra time to file and pay because April 15 falls on a Sunday in 2007, and the following day, Monday, April 16,is Emancipation Day, a legal holiday in the District of Columbia.

Monday, January 22, 2007

Life Insurance Facts

All life insurance policies have one thing in common: They provide a tax-free death benefit to your beneficiary when you die. But, that’s where the similarities stop. Here, the Michigan Association of CPAs offers an overview of the most common types of life insurance to assist you in determining which best meets your needs...-MORE-

Thursday, January 18, 2007

Disability Insurance: How To Tailor The Policy To Your Needs

What would happen if your paycheck suddenly stopped because you were ill or injured and couldn’t work? Could you still pay your mortgage or rent and monthly bills? You could if you had long-term disability insurance, reports the Michigan Association of CPAs. Disability insurance provides monthly income when you’re disabled and unable to work. Without coverage, a disability can deplete your savings or drive you into serious debt....-MORE-

Saturday, January 13, 2007

Procrastination Is ExpensiveOne of the most common questions for tax practitioners is deadlines. People want to know what is the last day they can do this or that. That's often the wrong question.

A savvy taxpayer also asks about first days. A wise investor wants to know what the earliest day is for funding an individual retirement account, health savings plan, or section 529 plan. The answer: January 1. By funding the plan on the first available day, the taxpayer begins to shelter investment earinings up to 15 1/2 months earlier than they would otherwise.

So don't waste another day of 2007. Fund your contributions now. The 2007 limits are:

IRAs (Traditional and Roth): $4,000, plus an additional $1,000 for those who are 50 years old by the end of 2007.

HSAs: $2,850 for single coverage and $5,650 for family coverage, if you have a qualifying high-deductible plan. Taxpayers who are 50 years old by the end of 2007 can contribute an additional $700.

Wednesday, January 10, 2007

Granholm Signs Bill Creating New Protection From Identity Theft

On January 3, 2007, Governor Jennifer Granholm signed Public Act 566, requiring notification of Michigan residents if the security of a database containing their personal information is breached. The legislation requires individuals and government agencies to notify consumers when a security breach puts personal information, including social security numbers, driver’s license numbers and financial information, at risk. Failure to properly notify consumers of a security breach can result in a fine of up to $750,000.

Making Retirement Savings A Goal For 2007

Money can’t buy happiness, but it can help to fund a comfortable retirement. The beginning of the New Year is an opportune time to get serious about saving for retirement, and the best way to do this is by setting specific goals, reports the Michigan Association of CPAs....-MORE-

January 9, 2007 - National Taxpayer Advocate Nina E. Olson today released her annual report to Congress, designating the alternative minimum tax for individuals (AMT) and the federal tax gap as the most serious problems facing taxpayers. The report also focuses extensively on concerns about IRS collection policies and the transparency of IRS information to the taxpaying public.

Tuesday, January 09, 2007

Starting in 2007, taxpayers have more choices and flexibility for the direct deposit of their 2006 federal income tax refunds. For the first time, they can split their refunds among up to three accounts held by as many as three different U.S. financial institutions, such as banks, mutual funds, brokerage firms or credit unions.

New energy-saving tax credits, expanded retirement savings incentives and new rules for giving to charity are among the changes taxpayers will find when they start filling out their 2006 federal income tax returns.

Saturday, January 06, 2007

The Telephone Excise Tax Refund (TETR) is a one-time payment available on your 2006 federal income tax return. It is designed to refund previously collected long distance telephone taxes. Individuals, businesses and tax-exempt organizations are eligible to request it.

Friday, January 05, 2007

January 4, 2007 -- The Internal Revenue Service today began a busy 2007 filing season that features telephone excise tax refunds, a new refund deposit feature and recently enacted tax breaks that may require extra attention from taxpayers.

Thursday, January 04, 2007

Michigan Treasury Launches New Web Site

The Michigan Department of Treasury has unveiled its new redesigned web site. In order to offer a more user-friendly, easier to navigate web site, information contained on the former Treasury site has been split into two sites, with all tax information available by clicking the taxes link on the left.

Tuesday, January 02, 2007

IRS Says Returns For 2006 Can Be Filed Starting Monday, January 8It also said it will not be able to process many of the returns that contain teachers, education and sales tax deductions until early February.

A reminder that the new provision for monetary donations to charities apply to contributions beginning in 2007 for taxpayers filing on a calendar year basis